Car test center business plan

A.A.M LTD. Business Plan 2017

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THE BUSINESS PLAN


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Confidentiality Agreement

This agreement is to acknowledge that the information provided by A.A.M LTD

in this business plan is unique to this business and confidential; therefore,

anyone reading this plan agrees not to disclose any of the information in this

business plan without the express written permission of A.A.M LTD.

It is also acknowledged by the reader of this business plan that the information

furnished in this business plan, other than information that is in the public

domain, may cause serious harm or damage A.A.M LTD and will be kept in the

strictest confidence.

This report is a property of A.A.M LTD and is kept in high confidentiality under

the ownership of the three entrepreneurs. The use of this report is only

authorized to the relevant personnel. Any unauthorized use or duplication of

this report will be considered as illegal and such individuals will be tried in

court.

Upon request, this document is to be immediately returned to A.A.M LTD

business.

Signature 1: Mr. Maxamuud Mohammad

Name:

Signature 2: Mr. Ahmed

Name:

Signature 3: Mr. Abdirisaq

Name

Date: August 1st, 2017

This is the business plan for A.A.M LTD. The presentation of this business plan

does not imply an offering of securities.


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TABLE OF CONTENTS

Introduction …………………………………………………………………………. - 4 -

Nature of business ………………………………………………………..…………. - 5 -

Required capital …………………………………………….…...…….……………. - 5 -

Executive summary …………………………………………………………………. - 6 -

Company description ………………………………………….……………………. - 8 -

SWOT Analysis …………………………………………………………….………. - 9 -

Marketing plan…………………………….…………………………………..……. - 10 -

Marketing Strategy…………………………………………………………………. - 11 -

Sales forecast………………………………………….…………………...…….…. - 15 -

Operational plan……………………………………….…………………...…….…. - 17 -

Management and Organization……….………….………………….……..………. - 18 -

Financial plan...……………………………………….…………………...…….…. - 20 -

Profit and Loss Statement …………………….…………………………………....Error!

Bookmark not defined.3 -

Balance sheet …………………….………………………………………………....Error!

Bookmark not defined.4 -

Cash Flow Statement……………………………….……………………..…….…. - 25 -


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INTRODUCTION

A.A.M LTD

61 fishers way Wembley London HA0 3FN

UK

T: 0753 929 4198

Web: www.car4test.com

www.car4test.co.uk

The Innovator (3 Partners)

Mr. Maxamuud Mohammad

Mr. Ahmed

Mr. Abdirisaq

http://www.car4test.com/

http://www.car4test.co.uk/


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Nature of business

The A.A.M LTD is a service company of car testing centre and renting business that has been

planned by a group of three entrepreneurs Mr. Ahmad, Mr. Abdirisaq and Mr. Maxamuud

Mohammad to help the clients who are in need of car instructors to lean driving or who need the

cars for testing centers on rental basis.

Required capital

The initial investment required for A.A.M LTD would be up to 25,000 UK Pounds. The amount of

£25,000 will be raised through the seed capital of three partners Mr. Ahmed, Mr. Abdirisaq, and

Mr. Maxamuud Mohammad. Once the business will start then it is expected to gain more

investment as a capital from investors’ equity that are planning for their safe investments to earn

good profits by using goodwill and the business cooperation of A.A.M LTD.


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Executive summary

The A.A.M LTD offers unique services. It is ultimately the goal of the company to be a one-stop

facility for all car testing needs, including instructor lesson etc but at this time A.A.M LTD is

offering a low cost quality car test services in Wembley London. The car test centers are

growing but the clients demanding for the car tests and the qualified instructors are also growing

in multiples. Therefore, the A.A.M LTD as a partnership business came into existence to fulfill

the needs of the car test center in the country. The A.A.M LTD is initially starting its operations

in the UK, but after two years of successful business the management is planning to expand the

car testing business to USA, Canada, Australia, and Germany as well. The capital investment is

£25000 being raised by the owners’ equity to raise the seed capital for the business.

The objective of A.A.M LTD is to achieve at least 1% of UK car test market customers in the

next five years. The A.A.M LTD is playing a role of middle man to help the customers and

instructors to get in contact with each other. The target market for the business are those people

who need the car instructors either for car tests, car booking on a specific timing, or driving

lessons in a short period of time by the car instructors.

The company is expecting to generate sales with a monthly increase of 5%. The aim of the

business is to facilitate more than 16000 customers in next five years to cover the market share

of 1% in the car test businesses in the country. In the next 5 years the company is expecting to

employ 2350 instructors as per requirements of the clients. Also the number of customers who

will be served in the beginning will be 6 customers per dat which will increase at a rate of 5%

each month.


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Financial Highlights by Year


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Company description

The A.A.M LTD is a registered and a service based limited liability Company in England. The

A.A.M LTD is established in UK as a car testing center and a car renting business which hear to

the contacts of the customers for their car instructor need. The company then sends the nearest

available car instructors who help the clients for their car testing or car lessons needs. The

A.A.M LTD also rents out the cars to the clients who need the cars for some specific time period

and on the rental basis. The ownership will be shared among three partner entrepreneurs – Mr.

Ahmed, Mr. Abdirisaq, and Mr. Maxamuud for the business. The A.A.M LTD is headquartered in

61 Fishers Way Wembley London HA0 3FN, United Kingdom. The A.A.M LTD is starting its

business venture from May 10, 2017 and is determined to grab the market leading shares soon.

There are thousands of people who are searching for car test centers and rental basis car

facility in UK, so A.A.M LTD has decided to facilitate the people for their car test center and rent

a cars needs. The mission of A.A.M LTD is to provide the ultimate satisfaction to everyone for

car testing and renting.

The A.A.M LTD is offering two main services; car test center services and car rental services. In

car test services, the A.A.M LTD is going to assign the instructors to the respective clients.

These instructors will further help the clients in several different ways such as providing

instructing and lean services, assigning the car tests, specifying the customized tests, delivering

the customized car test tricks. Whereas in car renting services, the A.A.M LTD is going to offer

rental services including the car rental, car sharing and car leasing services along with the

instructors. In car renting business the A.A.M LTD is further providing its renowned, affordable

yet high quality services in; business car rental services, leisure car rental services, car leasing

and sharing services. The A.A.M LTD is a startup car testing service provider which aims to

grasp the 1% of total market share in first two years which will be increased in the future with

high returns. The ultimate goal of the A.A.M LTD is to become the market leader for car testing

service providing in order to attain high level of customer satisfaction. The A.A.M LTD is

heading towards reaching the maximum market shares and clients’ satisfaction in near future.

Furthermore, the A.A.M.LTD will also provide an extra facility to provide a list of courses to be

considered in their car test center. Which means that after going through the driving classes in

the A.A.M LTD, the clients will be entitled to learn a number of things such as; Customer service

for drivers, Terminal tractor driver, Forwarder, Terminal operator, Taxi drivers, Business license

for passenger transport, Quality management etc.


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SWOT Analysis

The SWOT analysis is the assessment of an organization’s internal strengths and weaknesses,

& the external opportunities and threats for a particular business:

Strengths: Why are customers buying our services?

Weakness: Why the customers are using our competitors; what we need to be improved?

Opportunities: Is the market expanding; are there new services?

Threats: Who are the potential competitors?

Strengths

Training has now become an

integrated part of the driving.

Services provided to international

transporters

Marketing Promotions

Potential strong links with the

Associations of international

transporters.

Weaknesses

Training centre lacks legal status

No enforcement legislation

Opportunities

Government implementation being imposed

Threats

Licensing of operators

Licensing of national and international road

passenger operators

Licensing of national and international road

freight operators.


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Marketing plan


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Marketing Strategy


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Operational plan

The A.A.M LTD is limited liability car test center business venture. The A.A.M LTD is

headquartered in London for the car test services throughout the country. The instructors will be

facilitating the clients for car test services. The business will proceed two ways through

instructors. Firstly, the instructors will be conducting the car tests with the clients and secondly

the instructors will also help the clients to learn or practice the driving skills before putting

themselves to car tests. Furthermore, the A.A.M LTD will also transfer their services to car

renting facilities to clients; where the instructors will rent out the cars to them for some specific

time period as demanded and required by the respective clients. The operations are not

stopping here – the A.A.M LTD will further target the customers to other potential countries such

as USA, Canada, Australia, and Germany and so on. In the initial stages, the A.A.M LTD clients

will only be able to hire the cars with the instructors as the company doesn’t own the cars of

their own and also the number of cars will be limited. Then after a few successful business

years, the A.A.M LTD will provide the customers – the renting customers with the option of with

the drivers or without the drivers for rent. But this will be done after evaluating the driving

licenses and the profile of the customers. The A.A.M LTD is determined to provide the quality

car test and car rent services by tracking the sales and marketing goals of the company.

The competitive edge of A.A.M LTD is the car testing and instruction services throughout the

country.


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Management and Organization

At A.A.M LTD we are very much concerned for having the right business structure. In order to

achieve our goals in a profitable ways we are ensuring the right positions for the right human

resources that will be capable of ensuring and achieving the vision, objectives and the goals of

the company.

We are intended an organizational chart to ensure that every employee knows his or her

respective place within the organization and knows who to report to whom and when the need

arises. This is operated in a way to achieving an efficient work flow without affecting the

productivity in the organization.

We are also ensuring and confirming that we recruit only competent and potential hands that

have the renowned experience of working in the car test and car renting industry and will be

able to help build our car test plus car rent business to the level we want it in the market. We are

perfectly focused for the compensation packages for our employees who are amongst the best

professionals in the industry.

Listed below is the business structure that we intend to build at A.A.M LTD after six months of

business startup;

Chief Executive Officer

Sales and Marketing Team

Quality Assurance Manager

Human Resources and Admin Manager

Purchasing Manager

Accountant

Customer Service Executives

Store Manager

Security Guard

Delivery Driver


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Management Biographies:

As the A.A.M LTD is a partnership business for car tests and car rent business so the

management or the board of the directors in the A.A.M LTD will be Mr. Maxamuud Mohammad,

Mr. Ahmed, and Mr. Abdirisaq.

Mr. Abdirisaq is a graduate in computer programming and security networking. He is an

experienced professional and holding over 8 years of experience in his field. He is expected to

take part in IT, networking, and development side of the business. He will organize and control

the website and will manage the other networking and development issues in the company.

Mr. Ahmed is a driving instructor himself who has been instructing in the country from the past 7

years in his profession. Mr. Ahmed will also be responsible to monitor the instructors’ and

driving school issues of the A.A.M LTD Company.

While Mr. Maxamuud is an experienced taxi driver at Uber with years of experience in his field

He has been driving taxi since last 6 years. Mr. Maxamuud will be responsible for marketing and

research for the business. He is also responsible for the media and the conduct for the business

to organize and control the customer service issues, customer calls and the complaints or

suggestions from the customers.


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Financial plan

Investor Equity

A.A.M LTD will not be seeking an investment from a third party at this time nor any loans from

banks or family. All expenses will come out of pocket of three entrepreneurs to form a limited

partnership company.

Exit Strategy

If the drop down rate of remains more than 5% for more than four consecutive quartes, then the

A.A.M LTD will need to liquidate their business

Key Assumptions

The projections are made for 5 years, where the starting capital is 25,000 pounds. The tax rates

are set as 20%, whereas the marketing expenses are 15%, 10%, 10%, 8%, and 6% for first,

second, third, fourth, and fifth month respectively. The number of customers to be served each

day are supposed to be 6 people and the number of days are assumed to be 26 instructor

working days in a week. The numbers of customers are expected to be increased by 5% each

month. The office rental cost is 600 for monthly installments and 600 for the onetime deposit.

The utility bills are 100 per month whereas the advertising cost is 3750 in the first year.


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Revenue by Month

Expenses by Month


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Net Profit (or Loss) by Year


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Projected Profit & Loss

FY2018 FY2019 FY2020 FY2021 FY2022

Revenue £336,850 £352,443 £368,815 £386,006 £404,056

Direct Costs

Gross Margin £336,850 £352,443 £368,815 £386,006 £404,056

Gross Margin

% 100% 100% 100% 100% 100%

Operating

Expenses

Advertiseme

nt and

marketing

£3,750 £2,500 £2,500 £2,000 £1,500

Office rent £7,200 £7,200 £7,200 £7,200 £7,200

Deposit for

office

building

£600

Utilities and

bills £1,200 £1,200 £1,200 £1,200 £1,200

Taxes £20 £20 £20 £20 £20

Total

Operating

Expenses

£12,770 £10,920 £10,920 £10,420 £9,920

Operating

Income £324,080 £341,523 £357,895 £375,586 £394,136

Total

Expenses £12,770 £10,920 £10,920 £10,420 £9,920

Net Profit £324,080 £341,523 £357,895 £375,586 £394,136

Net Profit /

Sales 96% 97% 97% 97% 98%


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Projected Balance Sheet

FY2018 FY2019 FY2020 FY2021 FY2022

Cash £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

Accounts

Receivable £0 £0 £0 £0 £0

Total Current

Assets £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

Total Assets £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

Accounts

Payable £0 £0 £0 £0 £0

Total Current

Liabilities £0 £0 £0 £0 £0

Long-Term

Debt

Total

Liabilities £0 £0 £0 £0 £0

Paid-in Capital

Retained

Earnings £324,080 £665,603 £1,023,498 £1,399,084

Earnings £324,080 £341,523 £357,895 £375,586 £394,136

Total Owner's

Equity £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220


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Total

Liabilities &

Equity

£324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

Projected Cash Flow Statement

FY2018 FY2019 FY2020 FY2021 FY2022

Net Cash Flow

from

Operations

Net Profit £324,080 £341,523 £357,895 £375,586 £394,136

Net Cash Flow

from

Operations

£324,080 £341,523 £357,895 £375,586 £394,136

Cash at

Beginning of

Period

£0 £324,080 £665,603 £1,023,498 £1,399,084

Net Change in

Cash £324,080 £341,523 £357,895 £375,586 £394,136

Cash at End of

Period £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

Car test center business plan

Business

Transcript of Car test center business plan